Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar gains after weaker US economic reports

NZ dollar gains after weaker US economic reports damp demand for greenback

By Tina Morrison

June 26 (BusinessDesk) - The New Zealand dollar advanced after US economic reports raised concerns about the strength of the world's largest economy, damping demand for the greenback.

The kiwi rose to 87.28 US cents at 8am in Wellington, from 86.78 cents at 5pm yesterday. The trade-weighted index touched a high of 81.26 overnight, close to the record 81.29 reached earlier this month, and was recently at 81.19 from 80.80 yesterday.

The US dollar index, which measures the greenback against a basket of currencies, touched a five-week low overnight after a report showed the US economy shrank at a 2.9 percent annual rate in the first quarter, instead of the 1 percent pace reported last month, the largest revision since the series began in 1976. Economists had expected a decline of about 1.8 percent. Meanwhile, a separate report showed orders for long-lasting US manufactured goods unexpectedly declined 1 percent last month, the first drop in three months.

"The US dollar weakened across the board due to weaker GDP data," ANZ Bank New Zealand strategist Carrick Lucas and senior foreign exchange strategist Sam Tuck said in a note. "Uncertainty in the US will keep NZD/USD stronger for longer."

The kiwi will probably trade between 86.80 US cents and 87.60 cents today, ANZ said.

Stronger US GDP in the second quarter may largely offset the first quarter declines, ANZ said.

Tonight, traders will be eyeing an inflation report in the US which is closely watched by the Federal Reserve. The core PCE deflator is expected to rise to a 1.6 percent annual pace in May, from a previous pace of 1.4 percent.

In New Zealand today, the Reserve Bank publishes details of mortgage lending for high debt borrowers at 3pm.

The New Zealand dollar advanced to 92.88 Australian cents from 92.68 cents yesterday, gained to 64.06 euro cents from 63.76 cents, rose to 51.42 British pence from 51.12 pence and jumped to 88.93 yen from 88.42 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news